Problem 6 Oaktree Company purchased new equipment and made the following expenditures:

Purchase price	$	46,000
Sales tax		2,300
Freight charges for shipment of equipment		710
Insurance on the equipment for the first year		910
Installation of equipment		1,100

The equipment, including sales tax, was purchased on open account, with payment due in 30 days. The other expenditures listed above were paid in cash.

Required:

Prepare the necessary journal entries to record the above expenditures. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Journal entry worksheet

Transaction Index :

Record the purchase of equipment.

Record any expenditures not capitalized in the purchase of equipment.

Note: Enter debits before credits.

Event

General Journal

Debit

Credit

1

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